Turkey’s spectacular growth has darker side
Turkey may have achieved an impressive 5.1% economic growth in the first half of the year, but the risks are still there with myriad problems accumulating on the other side of the coin.
Turkey’s economy grew 5.1% in the second quarter, as many had expected, with the rate for the first half of the year hitting 5.1% as well. Ankara is now on course to easily achieve, and even overshoot, its target of 4.4% for 2017. This leaves the International Monetary Fund’s 2.5% forecast in the beginning of the year far off the mark.
The growth rate in the third quarter is expected to be even higher, perhaps over 10%, given the low-base effect of the same period last year, when the Turkish economy contracted 0.8% amid the clamor of the July 15 coup attempt. Even if the pace slows down in the fourth quarter, the annual figure is likely to still be in the 5-6% range.
